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The Down Side Of Using Dropshippers In The eBay Auction Arena!


Ok, let me just say right up front that I am not against drop-shipping! I love the concept. If you are dealing with a particular wholesale drop-shipping distributor that is serving your eBay ambitions well, then hold onto that company with bonds of steel, for truly good drop-shippers are hard to find!

Drop-Shipping sounds like the utopian business model. No up front investment in inventory. You don't have to carry packages to the Post Office, United Parcel, or Fedex. All you have to do is set up your own business, auction, or retail website and advertise the products that the company provides. Once the orders come in, you forward it to the drop-shipper and they send the product directly to your customer.

But, the devil is always in the details. Dropshipping is best suited for a stand alone E-Commerce website, mail order, or catalog advertising venue. If you are considering using a wholesale drop shipper for your eBay auction, then you might want to take a step back and let me provide you with some "points to ponder."

Back ordered products..The reality is that drop-shipping companies run out of product and will be back ordered. eBay bidders purchase product in "real time." They are under the impression that the item you auction, is the item they bought, not a product that is subject to shortages.

One or two customers might be understanding about the situation, but most will not. If you happen to run out of product on a regular basis then your negative feedback rating will go through the roof, and your reputation will suffer.

One way to combat shortages is to buy a pallet of product in advance, and have the drop-shipper store it in their warehouse so that you are assured of an ample supply. This method sort of goes against the idea of Drop-Shipping (buying the product in advance) but if you are selling on eBay, you would be best served by employing this method.

Also, if possible, find a drop-shipper in your area, or within a comfortable traveling distance. If you run into any supply or shipping problems, then you could be on hand to visit the facility, should any shipping or logistic concerns arise.

Fees..Some dropshippers will charge you a sign up, or entry fee of about twenty five to fifty dollars just for the privilege of selling their product. You are also charged a "processing fee" for sending the product to your customer.

The "price for processing" can range anywhere from seven to twenty dollars per item, depending on the type of merchandise you are selling. These expenses, plus eBay fees, can take a big chunk out of your bottom line. Finding a product that can bring you a profit, as well as offseting these types of expenses, can be a delicate balancing act.

Circumventing your customers..While I do not believe that this is a pervasive practice among drop-shipping companies, anecdotal evidence has suggested that some unscrupulous enterprises can cut you out of the sales loop. They could they easily substitute your return address for their company logo, selling directly to your customers.

Market saturation..One of the largest wholesale drop-shippers in the county is the B&F System, BNFusa.com. A lot of eBayer's started selling their products, one in particular, called Giovanni Navarre leather jackets. At first, it was a profitable item. After a while, everyone started selling the same product. Too much of the same supply, creates market saturation, ultimately destroying profit potential for the seller.

The Giovanni Navarre leather jackets are still being sold on eBay today, but I doubt that they still provide a very profitable return for the seller. Even though B&F carries over 500 products in 14 different categories, they are intimately familiar to the eBay community. You could probably make a great profit from just about any B&F product if you were to sell them off line, and out of the auction arena.

When a company becomes too well known to the general public it becomes almost impossible to make money from products that have flooded the marketplace. In addition to finding a drop-shipper who is close to home, it might be a good idea to find a DS company that is not well known to the eBay market, or who's products have not been scattered all over cyberspace.

These days however, it is hard to find drop-shippers that will cater to the smaller seller. Most will find it more profitable to sell in volume than by the piece. The larger wholesale dropshipping distributors are used by retail catalog operations. To get involved with the larger operations, you would have to be doing a tremendous sales volume.

If you still want to pursue drop-shipping as a source of supply for your eBay auction, then I would suggest that you read other opinions, and become as educated as you can about the drop-shipping company you do business with.

A good and inexpensive start to finding drop-shipping companies is the Drop Shipping News: http://www.drop-shipping-news.com . Remember, when it comes to eBay auction selling, "own what you sell." Never leave customer service, or your feedback rating in the hands of other people!!

Robert C. Potter is a wholesale and retail surplus products specialist. He is the author of "The Ultimate Guide To Products For Resale!" Over 300 Wholesale & Surplus Supply Sources For eBay Auction Sellers, E-Commerce Websites, Flea Market Vendors, and Retail Store Owners! You can find his 160 page ebook at: http://www.productsforresale.com.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Mon. March / 01 / 2021

Black Knight #1 Auction Happening Right Now At Heritage Auctions - Bleeding Cool News
Black Knight #1 Auction Happening Right Now At Heritage Auctions  Bleeding Cool News

ACV Auctions, Backed by SoftBank, Files to Go Public - Barron's
ACV Auctions, Backed by SoftBank, Files to Go Public  Barron's

ACV Auctions, Buffalo's first billion-dollar startup, files to go public - Buffalo News
ACV Auctions, Buffalo's first billion-dollar startup, files to go public  Buffalo News

Response to 4G auction may set tone for 5G reserve price - Mint
Response to 4G auction may set tone for 5G reserve price  Mint

ACV Auctions seeks to raise $100 million in IPO - Buffalo Business First - Buffalo Business First
ACV Auctions seeks to raise $100 million in IPO - Buffalo Business First  Buffalo Business First

Treasury Yields Just Spiked After a Brutal 7-Year Auction. Here's What It Means. - Barron's
Treasury Yields Just Spiked After a Brutal 7-Year Auction. Here's What It Means.  Barron's

St. Louis County to hold online auction of waterfront properties - Duluth News Tribune
St. Louis County to hold online auction of waterfront properties  Duluth News Tribune

Government Auctions to Boost Colombian Non-Conventional Renewable Energy - Fitch Ratings
Government Auctions to Boost Colombian Non-Conventional Renewable Energy  Fitch Ratings

Goldin Auctions - Benzinga
Goldin Auctions  Benzinga

Treasury Makes History With First Two-Year Note Auction Premium - Bloomberg
Treasury Makes History With First Two-Year Note Auction Premium  Bloomberg

Bethesda Auctions Chance to Design Starfield Character for Charity - IGN - IGN
Bethesda Auctions Chance to Design Starfield Character for Charity - IGN  IGN

City of San Angelo Online Auction Under Way - San Angelo LIVE!
City of San Angelo Online Auction Under Way  San Angelo LIVE!

Venom Lethal Protector #1 Rare Gold CGC 9.8 On Auction At Heritage - Bleeding Cool News
Venom Lethal Protector #1 Rare Gold CGC 9.8 On Auction At Heritage  Bleeding Cool News

UGA great Jake Scott’s memorabilia bringing big money at auction - Atlanta Journal Constitution
UGA great Jake Scott’s memorabilia bringing big money at auction  Atlanta Journal Constitution

Junior Market Steer Auction an invitation only event this year to follow City of San Antonio’s pandemic safety protocols - San Antonio Express-News
Junior Market Steer Auction an invitation only event this year to follow City of San Antonio’s pandemic safety protocols  San Antonio Express-News

Classic car auction comes to Glendale, Sun Cities residents to drive - Your Valley
Classic car auction comes to Glendale, Sun Cities residents to drive  Your Valley

Effects of Transporting Cattle on Auction Prices - Drovers Magazine
Effects of Transporting Cattle on Auction Prices  Drovers Magazine

Lakeside Inn & Casino auction to be held next week, bidding open - Tahoe Daily Tribune
Lakeside Inn & Casino auction to be held next week, bidding open  Tahoe Daily Tribune

Benefits of in-person used-car auctions remain clear - Automotive News
Benefits of in-person used-car auctions remain clear  Automotive News

2 classic wagons from Ford family personal collection up for auction - WKYC.com
2 classic wagons from Ford family personal collection up for auction  WKYC.com

Hundreds of Colorado self-storage units up for auction during pandemic - The Denver Channel
Hundreds of Colorado self-storage units up for auction during pandemic  The Denver Channel

Mike Trout's 1st MLB Jersey Hits Auction Block, Should Sell For Over $1 Mil! - TMZ
Mike Trout's 1st MLB Jersey Hits Auction Block, Should Sell For Over $1 Mil!  TMZ

10-year Treasury yield surges above 1.50% after 'awful' debt auction - MarketWatch
10-year Treasury yield surges above 1.50% after 'awful' debt auction  MarketWatch

TREASURIES-Inflation bets, poor auction send yields up to new milestones - Reuters
TREASURIES-Inflation bets, poor auction send yields up to new milestones  Reuters

Lessons from spectrum auctions: Entner | FierceWireless - FierceWireless
Lessons from spectrum auctions: Entner | FierceWireless  FierceWireless

St. Louis County's online land auction nets $764,000 in sales - Duluth News Tribune
St. Louis County's online land auction nets $764,000 in sales  Duluth News Tribune

Van Gogh drawing once looted by Nazis to be sold at auction - The Times of Israel
Van Gogh drawing once looted by Nazis to be sold at auction  The Times of Israel

Presidents' Day Auction Offers Abraham Lincoln's Hair and Other Oddities - The New York Times
Presidents' Day Auction Offers Abraham Lincoln's Hair and Other Oddities  The New York Times

ICE publishes auction calendar for UK's new Emissions Trading Scheme - Business Wire
ICE publishes auction calendar for UK's new Emissions Trading Scheme  Business Wire

MLCS Mini Jubilee Jewelry Online Silent Auction - MyMotherLode.com
MLCS Mini Jubilee Jewelry Online Silent Auction  MyMotherLode.com

Collector car auction coming to State Farm Stadium in March - KTAR.com
Collector car auction coming to State Farm Stadium in March  KTAR.com

Its unique: Gold Mohur medieval coin from Mughal era auctions for Rs 56 lakh - Republic TV
Its unique: Gold Mohur medieval coin from Mughal era auctions for Rs 56 lakh  Republic TV

Slave Auction Block Vigil honors the lives on enslaved laborers sold at Court Square - WVIR
Slave Auction Block Vigil honors the lives on enslaved laborers sold at Court Square  WVIR

ACV Auctions adds to partner list with ParkMyFleet - Auto Remarketing
ACV Auctions adds to partner list with ParkMyFleet  Auto Remarketing

Rarely seen Van Gogh painting exhibited ahead of auction - Associated Press
Rarely seen Van Gogh painting exhibited ahead of auction  Associated Press

Suspicious Winning Bid of $2.25 Million USD Forces Halt of Doernbecher AJ1 "What The" Auction - HYPEBEAST
Suspicious Winning Bid of $2.25 Million USD Forces Halt of Doernbecher AJ1 "What The" Auction  HYPEBEAST

K-State studies effects of transporting cattle on prices paid at auction - High Plains Journal
K-State studies effects of transporting cattle on prices paid at auction  High Plains Journal

22 horses, donkeys rescued from Cookeville auction and possible slaughter pipeline - WKRN News 2
22 horses, donkeys rescued from Cookeville auction and possible slaughter pipeline  WKRN News 2

Verizon pledges whopping $45B in C-band auction - FierceWireless
Verizon pledges whopping $45B in C-band auction  FierceWireless

Annual fur auction moves online for 2021; set for March 1 to April 9 - Ontario Argus Observer
Annual fur auction moves online for 2021; set for March 1 to April 9  Ontario Argus Observer

NFT Art Goes Viral and Heads to Auction — But What Is It? - Hyperallergic
NFT Art Goes Viral and Heads to Auction — But What Is It?  Hyperallergic

Station wagons from Ford family's personal collection up for auction - Detroit Free Press
Station wagons from Ford family's personal collection up for auction  Detroit Free Press

Oceanfront Bermuda Estate with Boat House Heading for Auction - Mansion Global
Oceanfront Bermuda Estate with Boat House Heading for Auction  Mansion Global

REFILE-TREASURIES-Inflation bets, poor auction catapult key yield above 1.5% - Reuters
REFILE-TREASURIES-Inflation bets, poor auction catapult key yield above 1.5%  Reuters

Massive 242-carat diamond expected to sell for $2 million at auction - KIRO Seattle
Massive 242-carat diamond expected to sell for $2 million at auction  KIRO Seattle

Unsigned, vintage ceramics can be identified at auction - AberdeenNews.com
Unsigned, vintage ceramics can be identified at auction  AberdeenNews.com

After chaotic auction, Doernbecher halts bidding in Nike (NYSE: NKE) charity event - Portland Business Journal - Portland Business Journal
After chaotic auction, Doernbecher halts bidding in Nike (NYSE: NKE) charity event - Portland Business Journal  Portland Business Journal

Everyone wins in Kiwanis' Bids for Kids silent auction - Journal Times
Everyone wins in Kiwanis' Bids for Kids silent auction  Journal Times

'Extraterrestrial crystal ball' hits the auction block at Christie's - Livescience.com
'Extraterrestrial crystal ball' hits the auction block at Christie's  Livescience.com

Art Auction Benefits Black Scholars - Gulfport Gabber
Art Auction Benefits Black Scholars  Gulfport Gabber

BCA conducts auction for unsanctioned T20 league before getting BCCI's approval - Hindustan Times
BCA conducts auction for unsanctioned T20 league before getting BCCI's approval  Hindustan Times

Latest Western Climate Initiative auction sells out; still space for more climate ambition from cap and trade - Environmental Defense Fund
Latest Western Climate Initiative auction sells out; still space for more climate ambition from cap and trade  Environmental Defense Fund

Online auctions deliver on promise of pre-foreclosure sales - HousingWire
Online auctions deliver on promise of pre-foreclosure sales  HousingWire

St. Rose school's online auction, fundraising week to wrap up Saturday - Longview Daily News
St. Rose school's online auction, fundraising week to wrap up Saturday  Longview Daily News

Late Broadway Producer James M. Nederlander’s Fifth Avenue Apartment Sells at Auction - Mansion Global
Late Broadway Producer James M. Nederlander’s Fifth Avenue Apartment Sells at Auction  Mansion Global

Concordia creditors do battle as campus slated for June foreclosure auction - OregonLive
Concordia creditors do battle as campus slated for June foreclosure auction  OregonLive

Radwood's Auction Site Opens Next Week, Here's What to Expect - The Drive
Radwood's Auction Site Opens Next Week, Here's What to Expect  The Drive

Brazil regulator approves 5G spectrum auction rules, no Huawei ban - Reuters
Brazil regulator approves 5G spectrum auction rules, no Huawei ban  Reuters

$40 Million Goldin Auctions Investment Group Includes Kevin Durant, Dwyane Wade, Deshaun Watson - Beckett Media, LLC
$40 Million Goldin Auctions Investment Group Includes Kevin Durant, Dwyane Wade, Deshaun Watson  Beckett Media, LLC

Brazil approves 5G auction notice - ZDNet
Brazil approves 5G auction notice  ZDNet

Cold War Relics Auction - KTLA
Cold War Relics Auction  KTLA

'Magical piece of Vince Lombardi' found in box, now up for auction - Green Bay Press Gazette
'Magical piece of Vince Lombardi' found in box, now up for auction  Green Bay Press Gazette

Auction House Suspends Sale of 19th-Century Jewish Burial Records - The New York Times
Auction House Suspends Sale of 19th-Century Jewish Burial Records  The New York Times

Most Valuable Company Profile: Auction.com - DSNews - DSNews.com
Most Valuable Company Profile: Auction.com - DSNews  DSNews.com

Logbook Signed by Martin Luther King Jr. in Birmingham Jail Breaks Auction Record - Hyperallergic
Logbook Signed by Martin Luther King Jr. in Birmingham Jail Breaks Auction Record  Hyperallergic

Tom Brady rookie card skyrockets in auction - WLNE-TV (ABC6)
Tom Brady rookie card skyrockets in auction  WLNE-TV (ABC6)

Auction Dilemma: Audi A8 Vs Volkswagen Phaeton | HotCars - HotCars
Auction Dilemma: Audi A8 Vs Volkswagen Phaeton | HotCars  HotCars

FCC Reveals Its C-Band Auction Winners - Radio & Television Business Report
FCC Reveals Its C-Band Auction Winners  Radio & Television Business Report

Hollywood, history combine in Churchill art auction - FRANCE 24
Hollywood, history combine in Churchill art auction  FRANCE 24

Auction Dilemma: Chevrolet Tahoe Police Pursuit Vs Ford Explorer Police Interceptor - HotCars
Auction Dilemma: Chevrolet Tahoe Police Pursuit Vs Ford Explorer Police Interceptor  HotCars

Local organization hosts annual Blue Suede Dinner and Auction - WBBJ TV - WBBJ-TV
Local organization hosts annual Blue Suede Dinner and Auction - WBBJ TV  WBBJ-TV

'52 Mantle, Mahomes, MJ Rookies Push Goldin Auction Past $30... - Sports Collectors Daily
'52 Mantle, Mahomes, MJ Rookies Push Goldin Auction Past $30...  Sports Collectors Daily

Sotheby’s Christo Auction, Part 1, Nets $9.8 Million - The New York Times
Sotheby’s Christo Auction, Part 1, Nets $9.8 Million  The New York Times

FLDS's compound sold in Sheriff's auction to former members - KOTA
FLDS's compound sold in Sheriff's auction to former members  KOTA

Central High FFA to host appreciation dinner, sets auction date - Duncan Banner
Central High FFA to host appreciation dinner, sets auction date  Duncan Banner

Cyberpunk and Witcher hackers don’t seem to be bluffing with $1M source code auction - The Verge
Cyberpunk and Witcher hackers don’t seem to be bluffing with $1M source code auction  The Verge

Powell Auction & Realty, LLC - The Barton Collection – Online Auction Sale #2 Antiques - Antique Trader
Powell Auction & Realty, LLC - The Barton Collection – Online Auction Sale #2 Antiques  Antique Trader

Brazil's auction rules rule in Huawei - Light Reading
Brazil's auction rules rule in Huawei  Light Reading

HALO art auction raises $400,000 for homeless youth - Jefferson City News Tribune
HALO art auction raises $400,000 for homeless youth  Jefferson City News Tribune

Tesla charging cost magnified as Texas electricity auction system fuels price spike - Fox Business
Tesla charging cost magnified as Texas electricity auction system fuels price spike  Fox Business

Take Home a Champion: Race-Winning Corvette C7.R Up for Auction - imsa.com
Take Home a Champion: Race-Winning Corvette C7.R Up for Auction  imsa.com

ONLINE PUBLIC AUCTION, MINI PRICE STORAGE, 4396 POUNCEY TRACT RD., BIDDING ENDS MARCH 17TH, 3 PM, www.lockerfox.com - Richmond.com
ONLINE PUBLIC AUCTION, MINI PRICE STORAGE, 4396 POUNCEY TRACT RD., BIDDING ENDS MARCH 17TH, 3 PM, www.lockerfox.com  Richmond.com

An auction for the ages: One day, 10 hours, 100 properties, a quarter million dollars in sales - Nashua Telegraph
An auction for the ages: One day, 10 hours, 100 properties, a quarter million dollars in sales  Nashua Telegraph

Do something useful with spectrum auction proceeds - Lowenstein - FierceWireless
Do something useful with spectrum auction proceeds - Lowenstein  FierceWireless

Worst US 'slave' auction has Philly ties | Michael Coard | phillytrib.com - The Philadelphia Tribune
Worst US 'slave' auction has Philly ties | Michael Coard | phillytrib.com  The Philadelphia Tribune

Week in Review: Islands, Amar'e and Expensive Auctions - Mansion Global
Week in Review: Islands, Amar'e and Expensive Auctions  Mansion Global

First vehicle auction of 2021 set for Feb. 23 at Manheim Keystone Pennsylvania - ABC27
First vehicle auction of 2021 set for Feb. 23 at Manheim Keystone Pennsylvania  ABC27

Nearly 700 San Diego properties up for auction | Registration now open - CBS News 8
Nearly 700 San Diego properties up for auction | Registration now open  CBS News 8

Rare Chesapeake Decoys Sell at Auction for up to $155K Each - Chesapeake Bay Magazine
Rare Chesapeake Decoys Sell at Auction for up to $155K Each  Chesapeake Bay Magazine

Over 90 Items Donated By Local Businesses To Auction For Tony Wise - NBC Right Now
Over 90 Items Donated By Local Businesses To Auction For Tony Wise  NBC Right Now

Unitarian Universalist Church of Ellsworth hosts 2021 Armchair Auction - WABI
Unitarian Universalist Church of Ellsworth hosts 2021 Armchair Auction  WABI

Under the Hood: Carroll Shelby’s ‘Cobra to End All Cobras’ Is Coming to Auction—Again - Robb Report
Under the Hood: Carroll Shelby’s ‘Cobra to End All Cobras’ Is Coming to Auction—Again  Robb Report

Vintage meets modern: A glimpse into Super Bowl LV Live Auction items - WFLA
Vintage meets modern: A glimpse into Super Bowl LV Live Auction items  WFLA

Super Rare 1970 Oldsmobile 442 W-30 Heads To Auction - GM Authority
Super Rare 1970 Oldsmobile 442 W-30 Heads To Auction  GM Authority

Powder Hounds online art auction to benefit homeless pets - The Durango Herald
Powder Hounds online art auction to benefit homeless pets  The Durango Herald

Guinness Museum holds world record auction - WGRZ.com
Guinness Museum holds world record auction  WGRZ.com

Farewell to Napa's annual wine auction, the raucous charity bacchanal that's ended after 40 years - San Francisco Chronicle
Farewell to Napa's annual wine auction, the raucous charity bacchanal that's ended after 40 years  San Francisco Chronicle

Farmland Insider: Kansas auction of 10900 acres sells for $38 million - Successful Farming
Farmland Insider: Kansas auction of 10900 acres sells for $38 million  Successful Farming

NAEC's NEXT receives $27.5 million from FCC auction - ktlo.com
NAEC's NEXT receives $27.5 million from FCC auction  ktlo.com

Van Gogh painting not seen for 100 years set for auction - CNN
Van Gogh painting not seen for 100 years set for auction  CNN

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